1 Bank, 2 Credit Unions Fail

Running Tally 0f 2011 Failures Hits 63
1 Bank, 2 Credit Unions Fail
Federal and state regulators closed one bank, liquidated one credit union and conserved another on Friday, June 24.

These actions raise the total number of failed institutions to 63 so far in 2011.

The latest failures:

Borinquen FCU Conserved

The National Credit Union Administration assumed control of service and operations at Borinquen Federal Credit Union of Philadelphia. While continuing normal member services, NCUA will work to resolve issues affecting the institution's safety and soundness.

Deposits at Borinquen Federal Credit Union remain protected. Administered by NCUA, the National Credit Union Share Insurance Fund (continues to insure individual accounts at Borinquen Federal Credit Union up to $250,000.

Borinquen Federal Credit Union had $7 million in assets at the time it was conserved.

St. James A.M.E. FCU Liquidated

The NCUA liquidated St. James A.M.E. Federal Credit Union of Newark, N.J. North Jersey Federal Credit Union of Totowa, N.J., immediately assumed St. James A.M.E. Federal Credit Union's members.

The accounts of the new North Jersey Federal Credit Union members remain federally insured by the National Credit Union Share Insurance Fund up to $250,000.

At the time of liquidation, St. James A.M.E. FCU had deposits of approximately $1 million.

Mountain Heritage Bank, Clayton, Ga., Closes

Mountain Heritage Bank, Clayton, Georgia, was closed by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First American Bank and Trust Company, Athens, Ga., to assume all of the deposits of Mountain Heritage Bank.

As of March 31, 2011, Mountain Heritage Bank had approximately $103.7 million in total assets and $89.6 million in total deposits.

The FDIC and First American Bank and Trust Company entered into a loss-share transaction on $69.2 million of Mountain Heritage Bank's assets. First American Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $41.1 million.


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